Hims & Hers Health, Inc. (NYSE:HIMS) shares fell over 6% in extended trading on August 10 after the telehealth company delivered another quarter of rapid growth alongside sharply weaker profitability. Revenue rose 38% year over year to $753.2 million, subscribers increased 19% to 2.89 million, and Monthly Revenue per Average Subscriber climbed 21% to $92. The company also raised its full-year revenue outlook to $3.1 billion to $3.3 billion from $2.8 billion to $3.0 billion.
The earnings line told a different story. Hims reported an $86.3 million net loss, equal to 37 cents per share, compared with a $42.5 million profit a year earlier. Analysts surveyed by LSEG had expected a loss of just 1 cent per share.
Gross margin fell to 64% from 76%. The market is no longer asking whether Hims & Hers Health, Inc. (NYSE:HIMS) can attract weight-loss customers. The branded GLP-1 pivot has already answered that question.
The issue is whether those customers, international expansion, and personalized care can eventually replace the unusually attractive economics of compounded treatments. The strongest part of the quarter was that demand survived a major change in the product model. In March, Hims expanded its branded weight-loss assortment through an agreement with Novo Nordisk and stopped broadly advertising compounded GLP-1 drugs.
That could have created a deep revenue gap. Instead, management said the branded shift was a key driver of renewed domestic growth. U.S. revenue increased 16% year over year to $621.8 million.
Hims & Hers Health, Inc. (NYSE:HIMS) ended the quarter with approximately 307,000 more subscribers than it had at the end of March. Those were consolidated net additions and included subscribers acquired with Eucalyptus, which joined Hims during June. Even with the acquisition contribution, the increase shows that the platform continued expanding during the branded-drug transition.
Extract — continue reading at the source.
